Company a Has a Receivables Turnover of 8

question 154

Multiple Choice

Company A has a receivables turnover of 8.0.Company B has a receivables turnover of 10.0.Which of the following statements is correct?

• A)Company A collects its receivables faster than Company B.
• B)Company B collects its receivables faster than Company A.
• C)Company A makes more sales on account than Company B.
• D)Company B makes more sales on account than Company A.

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Definitions:

Stress

A physical or psychological response to internal or external pressures, often resulting in physical, mental, or emotional strain or tension.

Flexibility

The quality of bending easily without breaking, referring to the range of movement in a joint or series of joints.

Intervertebral Disks

The cartilage pads that sit between the vertebrae in the spine, acting as shock absorbers and allowing for flexibility.

Synovial Joints

Joints encased in a fluid-filled capsule, allowing for wide range of motion and flexibility, such as knees and elbows.